This is below the three month average rate of 13.1% and is the fourth consecutive deceleration in the food category. Food inflation is at its lowest since September 2022.
Helen Dickinson OBE, chief executive of the BRC, said: “Better news for consumers as shop price inflation in August eased to its lowest level since October 2022. This was driven by falling food inflation, particularly for products such as meat, potatoes and some cooking oils.
“Russia’s withdrawal from the Black Sea Grain Initiative and its targeting of Ukrainian grain facilities, as well as poor harvests across Europe and beyond, could serve as potential roadblocks to lower inflation. A potential £400m hike to business rates bills from next April would certainly jeopardise efforts to tackle inflation unless the Chancellor intervenes.”
Fresh food inflation slowed further in August, to 11.6%, down from 14.3% in July. This is below the three month average rate of 13.8% and is at its lowest since August 2022. Ambient food inflation decelerated to 11.3% in August, down from 12.3% in July. This is below the three month average rate of 12.2% and is the lowest since January 2023.
Mike Watkins, head of retailer and business insight at NielsenIQ, added: “The unpredictable weather of recent weeks has dampened consumer demand with some high street retailers increasing promotional activity and food retailers continuing to extend price cuts, as the inflationary pressure coming from supply chains continues to lessen.
“Looking ahead, a NIQ survey shows that 60% of households expect to be severely or moderately impacted by rising household costs in the coming months so once back from summer holidays, we expect consumers to remain cautious about discretionary spend even as inflation decelerates.”